The crypto bear market has been a blessing for this bitcoin trading firm's booming new business

But the bearish turn has been a blessing for Genesis
Global Trading's new lending business.

Genesis originated $30 million in crypto loans on
Tuesday, its largest amount ever, as many borrowing crypto are
doing so in order to take a short position.

Bitcoin markets have been in a tailspin this week, but that's
actually been a blessing for one trading firm's burgeoning new
lending business.

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Genesis Global Trading, a crypto trading shop based in New York,
launched a crypto lending unit, Genesis Capital, earlier this
year. That business originated $30 million in crypto loans on
Tuesday, its largest amount ever, according to chief executive
officer Michael Moro. The company typically lends out around $2
million per day on average.

In a sense, it could be a bearish indicator for the market. Many
of the people who are borrowing crypto from the firm are doing so
in order to take a short position on a given coin.

"Hedge funds could borrow bitcoin to short it, for example," Lex
Sokolin, a partner at Autonomous NEXT, the financial-technology
analytics provider. "This would mean they borrow some amount in
bitcoin, sell it, and then repay in bitcoin (at whatever price)
whenever the loan comes due."

Part of the bump in lending is also tied to the launch of
Ethereum Classic trading on Coinbase, according to Moro.

As for the business' next steps, Moro said he expects to expand
its services. One thing the firm could do is start doing is put
the collateral they are given for loans to work.

"All the people borrowing and shorting are putting up
collateral," he said. "We have the ability to turn around and do
whatever we want with the collateral."

The company is also considering US dollar loans. This would mean
a bitcoin holder who wants to liquidate his or her crypto could
do so without selling it but still have access to cash.